Monday, August 01, 2011

Update: Mystery of the Young Homeowners

Mystery still not solved.

As of the second quarter of 2011, a hefty 21.9 percent of householders under age 25 owned a home. Sure, this figure has fallen since it reached a peak of 25.7 percent in 2005. But it is still far above the 14.8 percent of 1993. Since rates peaked, the homeownership rate of this age group has fallen less than that of any other age group except householders aged 65 or older.

What gives? Because of their youth, most homeowners under age 25 had to have bought their home recently--probably since the housing bubble burst. Where is the money coming from? Could it be affluent parents buying condos for their kids in college?

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